Economists Say Obama Jobs Plan Would Prevent Another Recession

Economists believe President Barack Obama’s jobs bill would stave off another recession — though their economic projects are more bearish than the White House, and they predict it will not pass.

A Bloomberg survey of economists finds that they estimate the plan would boost GDP by 0.6 per cent in 2012, create or save 275,000 jobs, and lower the unemployment rate by 0.2 per cent.

The numbers, the median estimate of the 34 economists surveyed, are much lower than those cited by the White House based on the analysis of Moody’s Chief Economist Mark Zandi, who predicted it would increase GDP by 2 per cent and create or save 1.9 million jobs.

According to Bloomberg, Goldman Sachs estimated the plan would grow GDP by 1.5 per cent, while Macroeconomic Advisers said 1.3 per cent and UniCredit Research, up to 2 per cent.

But the bill is nowhere near passing Congress — with Senate Democrats stalling consideration of the bill, which has been declared ‘dead on arrival’ in the GOP-controlled House of Representatives.